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Lander

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Posts posted by Lander

  1. Economic reality is starting to bite hard for many 20-30 somethings..

    "The Great Recession may be over, but this era of high joblessness is probably just beginning. Before it ends, it will likely change the life course and character of a generation of young adults. It will leave an indelible imprint on many blue-collar men. It could cripple marriage as an institution in many communities. It may already be plunging many inner cities into a despair not seen for decades. Ultimately, it is likely to warp our politics, our culture, and the character of our society for years to come."

    http://www.theatlantic.com/doc/201003/jobless-america-future

  2. Agree.They are trying to create inflation but its going everywhere but wages.That is very bad for housing.However there are a lot of people with cash,and right now what would you trust? Shares?Banks? Gilts? ,many people will prefer housing over any of those.

    You can easily buy houses here in the north in decent areas for 60-70k and get £450 a month rent.

    As mentioned i think IRs are the killer,if the base rate hits 5-7% at any time in the next 3 years i think that will spark a crash.

    Lower down,Local Housing Allowance is key.If support is cut,then that will cut the knees off BTL.

    The BofE is going to be forced to jack up rates if we want to preserve our aaa credit rating, no?

  3. Both of what you described are unfair, and if tested in court, the contract you have made with the landlord would be shown to be null and void. In this sort of thing, I am told the courts tend to come down quite in favour of the tenant.

    ...and therefore this is "fair wear and tear". Again, if tested in even a small claims court, this cannot be claimed by the landlord from the tenant.

    You can do what you like to the property, as long as, when you leave, it is back to its original condition - allowing for fair wear and tear.

    Another little known fact... damage to carpets older than five years old can not be counted towards reductions in your deposit. A carpet older than 5 years old is classed as worthless. The onus is on the landlord to prove the carpet is younger than five years old.

    I wasn't aware of this. Thanks

  4. The stability of renting? Okaaaaaaaaaaaaaaaaaaaaaaaaaaaay...

    I'm trying very hard to sell my home and will move into renting soon but I am under no illusions that it will be more stable than buying a home you can afford. I will be happy to rent for many reasons but stability is not something I'm expecting.

    People might be able to afford the house initially, but do they allocate for maintenance, repairs and upgrades over the long term? Often not, and this is when people run into trouble. I don't have to worry about stuff like this however.

    Our shower pump failed last night. All I had to do was pick up the phone and call british gas to come round and install a new one who are coming today. Our LL has a home care plan with them and if any thing fails to do with c/heating, plumbing or wiring all I need to do is pick up the phone to have the problem rectified. It's totally stress free because I'm not worried about how I'm going to pay for it.

  5. Good for you! You seem to have a enjoyed a long lease at a cost your happy with.

    I preferred to buy for several reasons. Firstly, most landlord’s idea of maintenance and refurbishment fall WAY below my expectations.

    Secondly, although I got on well with my last landlord, I was always aware it was a business relationship and my needs didn't factor in. If he had a better offer, he would have given me the option to match it, but terminate the lease if I didn't.

    Thirdly, when you take away the monthly amount being deducted from the outstanding debt, I'm paying WAY less than the equivalent rent (although this is mainly due to the part of the country I live in).

    In addition, I don't have to worry about any huge bills being presented for small amounts of damage to my home. I'm pretty handy when it comes to DIY, and I've got a few good mates in the building trade.

    I've also got a knack for making dodgy neighbours see the error of their ways, but I fear that ability will diminish as the years advance!

    Each to their own :)

    I've seen plenty of fair price rentals on the market lately that have been refurbished to a very high standard that will be probably good for at least 5 years -without needing any sort of maintenance work doing.

  6. Why do you think rentals will flood the market? Will more people owner / occupy?

    Servicing a mortgage is becoming impossible for the increasing number of people who have just lost their jobs or had big pay cuts, so in order to avoid getting repoed, they rent out their house and pay the mortgage off with said income.

  7. This is the first time I have rented for a while and I am keen. I have a 3 year lease at a very reasonable rent. I spent quite a bit of money up front decorating, carpets and new kitchen, but the rent is £10k per year under market value, so it is cheaper in the long run and the landlord has not had to shell out. Good deal all round and kids in a top local school.

    If I bought it would cost about £750k. I pay 2% of that each year in rent.

    Sounds like you got a good deal there. There will be plenty more as more rentals start to flood the market.

  8. I rent and we like our house, so no plans to move whilst it is cheaper to do so than pay a mortgage on a similar property. Though I guess the mortgage will stop in 20 years or so,whereas the rent could go on into retirement.

    However, whilst I am waiting for prices to drop, my landlord is waiting for prices to rise in order to sell. At some point he is going to realise which way things are going and will want to sell, thus we will be forced into either moving to another rental or buying somewhere.

    Also in a rented house you can't go putting up shelves and the like. I'm told some might see this as a disadvantage.

    The savings made by renting vs buying has enabled me to put some cash away for retirement

  9. Renting has been a generally positive and stress free experience for me. I've been in the same property for 6 years and in contrast to taking out a massive debt to pretend to 'own' the property, it's been considerably cheaper, And I don't have to worry about things like maintenance/refurbishment costs, interest rate rises, negative equity, job loss, repossession, being thrown out on the street, having my credit rating decimated and all the pain and humiliation that would come with it. In addition, in a worse case scenario, if my partner and I lost our income, we would be eligible for an 80% contribution towards our rent. So, in spite of what the bulls say, renting in these very uncertain times makes sense.

  10. The concept of creative destruction is a foreign one in the UK.

    I think that the US are much further down the path of having house prices adjust to reality than the UK. The pain in the US will be sharp but shorter than it will in the UK. The US will be well on the path to recovery in a couple of years while we will still be mired in a Japan style malaise.

    Attitudes are changing in the US towards debt

    http://online.wsj.com/article/SB10001424052970204409904574350432677038184.html

    I think we will get there eventually but the process is being hampered here by the media's relentless ramping and conditioning of the sheep that buying a house is still an 'investment'

  11. Cities, states, and municipalities starting to collapse..

    Mr. Bloomberg is proposing that city teachers agree to a much smaller raise in their next contract or face the possibility of 2,500 job cuts. And when asked Thursday whether his position signaled a new era of hard-line bargaining with all unions, Mr. Bloomberg sounded almost exasperated.

    “The bottom line is we don’t have any money,” he said. “There isn’t money to continue to employ the people we have. Forget about raises — that is so far down the road, it’s not the right question.”

    Linky

  12. I am sticking with my tracker. So far I am 12 thousand pounds up for doing nothing apart from changing my mortgage at the right time - when everybody was saying to fix now because rates are going to 10% (when rates were 5.75%).

    I think rates will go up for sure (at 0.5% they can't go down) but if they do go up it won't be by much over the next few years. I would be surprised if we see 5% any time in the next decade again.

    A tracker is definitely worth the gamble if you can afford higher rates if and when rates do go up,

    A friend of my girlfriend has just bought a house on tracker, she says if IRs go to 2% she'll have to sell it :huh:

    unbelievable :blink:

  13. http://news.bbc.co.uk/1/hi/business/8490810.stm

    Mortgages being paid on cards? Spiralling cost of living forcing families to live on credit?

    The BBC sound delighted as usual, no doubt fleshing it out later as a boost in consumer confidence.

    This sounds like bad news to me. Life in the UK is increasingly expensive and people can't afford to live within their means or pay for things with their own money.

    Nothing new there then. The recdepression is getting worse.

    And council tax?

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